In this episode of Minimise Debt, Maximise Cash, host Emma Reilly (CEO of Top Service) introduces an extract from a joint webinar with the CICM.

Moderated by Philip King (Non-Executive Director), the panel features Chelsea Ware (Travis Perkins) and Rosie Payne (Saint-Gobain) discussing current trends in collections. They explore whether overdue debts are rising, how credit teams manage "can't pay" versus "won't pay" scenarios, the increase in payment plan requests, and how to spot "red flag" invoice disputes.

Key Takeaways & Discussion Highlights

• Overdue Debt Trends & Cash Flow Bottlenecks:

  • Payment Delays on the Rise: Chelsea Ware notes that while a substantial volume of payments continues to come through, delays, payment plans, and cash flow strains are noticeably increasing across the construction supply chain.

  • Ripple Effects on Subcontractors: Main contractors delaying payments creates a trickle-down effect on subcontractors and sole traders, leaving multiple businesses vulnerable to a single client non-payment.

  • Unexpected Insolvencies: Alongside long-monitored accounts showing warning signs, credit teams are seeing unexpected failures driven by short-term cash flow freezes.

• "Can't Pay" vs. "Won't Pay" Dynamics:

  • Shift Toward "Can't Pay": Rosie Payne points out that sluggish cash flow across the supply chain means most current delays stem from genuine financial struggles rather than simple unwillingness.

  • Managing Payment Plans & Flexibility: With record requests for payment plans and split payments, credit teams are having to adapt, flex credit limits, and evaluate clients on a case-by-case basis to keep trade moving safely.

• Tactical Invoice Disputes & Red Flags:

  • Disputes as Cash Flow Shields: Disputes often increase during tough economic periods as clients seek excuses to delay payments.

  • Spotting Red Flags: A major red flag occurs when a client who rarely queries invoices suddenly places an entire set of overdue invoices into a Proof of Delivery (POD) query.

  • Operational Readiness: To counter tactical delays, credit teams must ensure backend operational processes (automatic PODs, order acknowledgements) are robust, removing excuses and enabling swift payment demands.

Webinar Announcement

To sign up for the next webinar, please visit:

👉 https://www.cicm.com/cicmevents.html

Connect with Us

Have questions about managing credit risk or handling disputed debts? Reach out on LinkedIn:

• Emma Reilly: Search for Emma Reilly Top Service on LinkedIn.

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